CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the July 2021 Financial Report
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The monthly financial report, developed in response to the COVID-19 pandemic, provides timely information and data related to the City's financial position and the local economy. With the state having moved into Phase 5 of the Restore Illinois Plan, monthly reporting will become less focused on the month-to-month performance of revenue indicators and more focused on broader financial discussions around the short- and long-term health of the City's financial position. The July report reviews the overall performance of the City budget through the first six months of 2021.
DISCUSSION:
Economic Indicators
Last month, Governor J.B. Pritzker officially moved the state into the final phase of the COVID-19 response efforts. The move opened all sectors of the state's economy and allows for large gatherings and festivals for the first time in more than a year. City staff continues to monitor various revenue streams and notes that several areas of the local economy are returning to pre-pandemic levels. Last month, staff indicated that reporting will focus less on monthly changes in revenues; however, there is activity in the monthly revenues worth highlighting in this report.
State-Collected Revenues: Revenues collected by the state continue to exceed expectations with the five key revenues exceeding budget projections by 50% in June. The City received a combined $8.26 million through the state collected revenues detailed below. State income tax exceeded $2 million for the second consecutive month, which was more than double our monthly budget projection. The monthly outperformance is partially attributable to the delayed tax filing deadline but overall, income tax is still $3 million above last year's receipts through the first six months of the year.
Sales ...
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